GAM assets higher in H1 despite gold fund outflows

* Assets in higher margin investment management arm fall

* GAM says highest ever inflows to absolute return funds

* Low margin private label assets up 2 pct

ZURICH, Aug 13 Asset management firm GAM Holding
said client assets edged higher in the first half of
2013, held back by the loss of a large mandate, heavy
withdrawals from its physical gold fund and June's equities
market fall.

In the group's higher margin investment management segment,
assets fell slightly to 72.1 billion francs despite what the
group said were its highest ever inflows to absolute return
single manager funds, which aim to profit in both rising and
falling markets.

"We are firmly convinced that, against the persistent
backdrop of slow economic growth, negative real yields and
highly volatile equity markets, active management will prove its
value," said group CEO David Solo in a statement.

"Clients cannot rely on 'easy' solutions to grow or
safeguard their wealth."

A 35 percent rise in performance fees, payable when funds
achieve a pre-determined return, helped lift net profits by 58
percent year-on year to 111.7 million francs, while earnings per
share were up 68 percent, boosted by an ongoing share buyback
programme which ends in April 2014.

Dec 8 Time Inc, the publisher of Time,
People and Fortune magazines, has tapped Morgan Stanley
and Bank of America Corp to help field takeover or
partnership interest, the Wall Street Journal reported.

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